European equities traded mixed, weighed down by rising long-term yields and a weaker euro. The report covers closing moves on the 13th and levels for major currencies and bonds, while the impact of US inflation data spread through the markets.
European markets saw mixed share-price movements throughout the day. The FTSE 100 ended slightly higher from the previous day, while profit-taking emerged in Frankfurt after the market hit a record high. The yield on 10-year UK government bonds rose to 5.335%. German government bond yields edged up from the previous day. There were no broadly positive revisions to regional growth indicators in the euro area, limiting risk appetite in the market.
The euro fell slightly to $1.1028 against the dollar, and the euro's decline continued. After trading in the upper ¥176 range against the yen, the euro fell temporarily to ¥176.21 amid selling during New York hours. The dollar also fell to ¥159.73 against the yen, with nervous trading continuing. US PPI came in below expectations at 0.3% month on month and 6.5% year on year, and there were moments when the rise in long-term US yields paused, but the dollar generally remained firm.
European bond markets fell in tandem with US Treasuries. In London, some financial stocks were bought, while selling was also seen in some materials stocks, but risk factors were generally limited. The European session continued to see a weaker euro and a stronger dollar, while cautious views remained about the direction of foreign exchange markets.
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